vol 25 no3,2025

Problems of the insufficiency of enforcement proceeds from the debtor's assets in Jordanian legislation

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Problems of the insufficiency of enforcement proceeds from the debtor's assets in Jordanian legislation.

Abstract:

The stage of distributing enforcement proceeds is the final stage of seizing the debtor's assets. It is the culmination of the enforcement process, allowing rights holders to obtain their rights within the frameworks established by law. However, the enforcement proceeds may not be sufficient to satisfy the rights of all creditors.

The importance of this research lies in finding legal solutions for the concurrence of creditors over a single debt that is insufficient for all of them, especially since the creditor's ultimate goal is to obtain his right. This right is obtained through the enforcement proceeds, a process characterized by ambiguity and the scattering of its governing provisions across multiple laws. This causes confusion and difficulty in understanding the procedures for distributing the proceeds. Added to this is the practical importance of this topic, which addresses a situation that looms large in the courts and requires solutions that guarantee the collection of rights, the ultimate goal of justice.

The main problem of the study lies in the adequacy of the regulations governing enforcement proceeds from the debtor's assets in Jordanian legislation, and its aspects of completeness and deficiency. This main problem branches into the following sub-questions: How are the proceeds from the debtor's assets distributed if the funds obtained from the sale are insufficient? What if the sale proceeds do not cover all attaching creditors, or if there are ordinary creditors alongside creditors with legally established privilege rights, or if there are creditors with privilege rights of the same rank and the proceeds are insufficient to pay all their debts? A question also arises when comparing the rights of privilege in the Jordanian Enforcement Law with those in the Jordanian Civil Code, which are marred by legislative shortcomings and deficiencies, not to mention conflict and contradiction.

The study concluded with a set of results and recommendations, most notably that the Jordanian Enforcement Law did not address the preference of a special privilege arising from a mortgage lien when it competes with the privilege related to the rights of the public treasury. The researcher recommends that all rights of privilege be included in the Jordanian Enforcement Law, their ranks clearly defined to remove ambiguity, and that the law explicitly stipulate the preference of special privilege.

Keywords: enforcement proceeds, concurrence of creditors, pro-rata division, general privilege, special privilege.

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